Weekly Market Commentary: Pushes Higher
Courtesy of Fallond Stock Picks
The S&P closed the week up 3.55% higher but hasn’t yet cleared the highs of the bear flag which lurk at 1,131 but so far the initial decline from 2010 highs has honored Fibonacci retracements
via StockCharts.com
In support, the NYSE Summation Index looks to have flinched and jumped early. A stochastic ‘buy’ is undermined by the lack of the oversold condition in the index itself.
via StockCharts.com
The only S&P breadth indicator to confirm a bottom (so far) is the S&P Percent of Stocks Above the 50-d MA. It has jumped from a low of 5.4% to 66.0% in a number of weeks.
via StockCharts.com
The Nasdaq has pulled further away from its head-and-shoulder reversal neckline but it hasn’t yet reached an oversold condition.
via StockCharts.com
The Percentage of Nasdaq stocks above the 50-day MA matched its S&P cousin with a confirmed ‘buy’ signal.
($NAA50R)
via StockCharts.com
So while the S&P and Nasdaq are pointing more towards a bottom they are not fully confirmed – yet.
